U.S. stocks soared on Tuesday after Spain debt auction met strong demand and German business and consumer confidence data rose unexpectedly despite ongoing debt crisis in the region.
It was the best day for major indexes in about a month. The Dow Jones industrial average surged 337.32 points, or 2.87 percent, to 12,103.58. The Standard & Poor’s 500 rallied 35.95 points, or 2.98 percent, to 1,241.30. The Nasdaq Composite Index soared 80.59 points, or 3.19 percent, to 2,603.73.
Sentiment was boosted in early trading after the Ifo institute’ s business climate index, based on a survey of 7,000 executives, climbed to 107.2 from 106.6 in November, while market analysts were expecting a drop.
Meanwhile, two economic institutes predicted that Germany, Europe’s biggest economy, will stave off the debt crisis and avoid a recession in 2012.
Also easing the concerns about the European debt crisis, Spanish 10-year yields fell to a two-month low of 5.06 percent after the country sold 5.64 billion euros of the three-month and six-month bills, exceeding its maximum target of 4.5 billion euros.
Tuesday’s domestic data also came in encouraging. The Commerce Department said Tuesday housing starts climbed 9.3 percent to a seasonally adjusted annual rate of 685,000 units. The number is the highest since April last year.